Improvement in inflation rates opens additional opportunities for the CB, but we cannot speak about a reduction of the prime rate by more than 25 basis points before the end of the year.

18 october 2013
| Nezavisimaya Gazeta

On Wednesday, the Central Bank of Russia issued a report on its money and credit policy. The document notes some progress in the government’s fight against the growth in consumer prices. The easing of money and credit policy is determined by inflation expectations.

Gleb PokatovichFirst Deputy Head

Gleb Pokatovich, Deputy Director General of the Analytical Center,
believes that structural problems are more important for the Russian economy in
its current condition, rather than the high cost of credit. Commenting on the
report of the Central Bank to Nezavisimaya Gazeta, Mr. Pokatovich suggested
that “the easing of the money and credit policy can hardly be considered
important for the recovery of economic growth”. According to the expert, the
improvement in inflation rates opens additional opportunities for the CB, but
we cannot speak about a reduction of the prime rate by more than 25 basis
points before the end of the year.